Tensions in Strait of Hormuz revive pipeline discussions
Officials and energy executives say pipeline alternatives are being reconsidered, despite long-standing concerns over cost and feasibility. The idea is simple on paper. Move oil and gas without relying on Hormuz. Execution is another matter.Saudi Arabia already has a working model, according to the Financial Times. Its 1,200km East-West pipeline, built in the 1980s during the Iran-Iraq ‘tanker war’, can carry up to 7 million barrels a day to the Red Sea port of Yanbu. It bypasses the strait entirely. That capacity is now central to current export strategies.
Saudi Aramco chief Amin Nasser recently described it as the ‘main route’ being used. Internally, there are fresh discussions on whether to expand it further or build additional lines to handle more of the kingdom’s 10.2 million barrels per day output.
High costs and security risks complicate new routes
Large-scale pipeline projects across the region have stalled before due to high capital requirements, complex terrain and cross-border politics.
Estimates suggest replicating the East-West pipeline today would cost at least $5 billion. More ambitious routes – for example from Iraq through Jordan, Syria or Turkey – could range between $15 billion and $20 billion, per Financial Times report.
Security risks complicate matters further. Parts of Iraq still contain unexploded ordnance. Militant activity has not fully disappeared. Southern routes towards Oman face their own challenges, including desert stretches and hard rock formations.
Even ports outside Hormuz are not immune. Recent drone attacks forced a temporary shutdown at Oman’s Salalah port.
Shift towards network-based pipeline strategy
Despite the obstacles, the tone has changed. Analysts point to a move away from theoretical planning towards more concrete discussions.
Some argue a single pipeline will not be enough. A network of multiple corridors may offer more resilience – though it would require coordination that Gulf states have historically avoided.
There are also broader ideas in play. One proposal links pipelines to a wider India-Middle East-Europe corridor, potentially extending energy and trade routes beyond oil and gas. Parts of that plan remain politically sensitive.
Near-term focus on expanding existing infrastructure
In the immediate term, expansion looks more realistic than new construction. Increasing capacity on the East-West pipeline and Abu Dhabi’s existing route to Fujairah could ease pressure without introducing cross-border complications.
Additional export terminals on Saudi Arabia’s Red Sea coast, including near the Neom project, are also under consideration.
No final decisions yet. Much depends on how the situation around Hormuz evolves. But the direction is clearer than before.
